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But what if their rent on whatever they are living in now is more than that mortgage?
I didn't put a lot down, but my mortgage is $675/month. Renting something equivalent would be nearly twice the cost.
You could easily say I "couldn't afford" the house, but what would my options be otherwise? Pay $900 for a 1BR? $1200 for something similar with a drive-under garage? Even more for a house?
1) You're talking about when all goes according to plan, I'm talking about when ish hits the fan.
2) with only 3% down you're upside down the second you move in as it'll cost you 6-7% in realtor fees just to sell.
3) If you can only come up with $15,000 for a down payment you have no business living in a $500k house.
4) A small down payment ensures foreclosure should there be a housing slump and unemployment. If you only put $15,000 down on a $500,000 house and a year later your unemployed and the house is only worth $425,000 you'll just walk away since you're only out the $15,000. If you put even 10% down you're less likely to walk away from the $50,000 in equity you put down.
30 years may sound like a long time when buying your home, especially if its your first home, but there is no debate that ocean levels are going to rise we are told. Will that happen in 30 years? I dont know but my point is things can and will change over a 30 year time span. Living along an ocean front would not be where Id put my roots and homestead in place for a lot of reasons not just the water rising one.
Many good reasons things can change have been mentioned through out this threat. I am surprised this reason is not mentioned and discussed here before now
1) You're talking about when all goes according to plan, I'm talking about when ish hits the fan.
2) with only 3% down you're upside down the second you move in as it'll cost you 6-7% in realtor fees just to sell.
3) If you can only come up with $15,000 for a down payment you have no business living in a $500k house.
4) A small down payment ensures foreclosure should there be a housing slump and unemployment. If you only put $15,000 down on a $500,000 house and a year later your unemployed and the house is only worth $425,000 you'll just walk away since you're only out the $15,000. If you put even 10% down you're less likely to walk away from the $50,000 in equity you put down.
Mr trump predicted one in the debates
The issue is if banks have huge repo inventories but are bolstered by federal reserve they will never sell and become landlords instead of lenders
Banks will sell. They will sell to hedge funds and investors. Banks are not gonna be landlords. Too many rules too many headaches. The 2009 bubble pop was the first go round. I guarantee you even if we have a real estate melt down banks are gonna hold and sell as they go. The old rules of eviction foreclose did then public sale are gone.
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Originally Posted by hotzcatz
I'm siding with your aunt and figure about six to nine months from now. Depends on your area, of course. Our area depends on tourists coming here and spending tons, that's not likely to happen for the next few years so there will be a lot of folks out of work. At the moment, the out of work folk are getting unemployment plus additional federal money, but when that runs out things are going to be in a world of hurt. Which then means they can't pay mortgages and houses will be available.
If you're looking to buy a house, pick the area you want and then advertise that you are willing to buy a house. That may save you some $$$ and save the homeowner unable to make payments from getting their credit screwed up by a foreclosure.
You’re only ongoing to be buying if you have a steady job. That’s the catch 22. I heard a lot of people over the years say I’m not buying now I’m gonnna when the next downturn comes around or I hope the housing market crashes I’ll be buying. I heard that back in 2015/2016. All those people that waited lost out on 40% equity gains 4/5 years of loan principal payment the opportunity to cut their payment down by refinancing from 4.5/5% down to 3% further reducing their payments and overall cost or the ability to sell and walk away with some major cash in their pocket and move elsewhere.
Will housing crash? Who knows. Probably. Will people be hurt? Sure some who overstretched.
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Originally Posted by Nik4me
The "homeowner's rent" does go up - due to the property taxes - when other people spend your money...
Property taxes are deductible.
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Originally Posted by txfriend
Apparently you are not working, but whining and playing on the computer taking money from your employer, like so many so-called hard-working people.
Apparently.....I’m allowed to take breaks and lunches smart guy.. Slavery is abolished.
Whining? I’m not whining about anything.
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Originally Posted by jerseygal4u
This is interesting. I bought my house in 2017. I have a 30 yr,4.0% mortgage. I was asked by my bank if i wanted to refinance to 2.2% 15 year mortgage. Is it smart to do so or should i wait until interest rates go even lower?
I get mixed bag answers from coworkers and family.
If it drops or keeps your payment the same or slightly more yes it’s worth it.
Last edited by Electrician4you; 12-10-2020 at 02:13 PM..
I think everyone who bought in the last year or two is going to be regretting it once the forclosures come and tenants are kicked out finally. I know a ton of losers who’ve just stopped paying because they can. Low inventory blah blah will go away and this propping up of a fake market will all fall apart. Most people still can’t work remotely and business has suffered massively in many sectors so there’s that as well. Commercial real estate is being hammered and won’t recover for long time.
Location: Stuck on the East Coast, hoping to head West
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I'm currently seeing 2 things in my area (mid-atlantic): falling rents and more people requesting rent and mortgage assistance.
I volunteer and we are overwhelmed with requests for help paying rent and mortgages. It is heartbreaking. Resources are drying up and I just don't know what is going to happen for some of these people.
Back to the topic: yes, I see a huge crisis coming. I also see rising taxes (income and property). My local government is already signaling an increase in taxes across the board when they meet in the new year.
Fuel prices will continue rising then probably jump around the middle of the decade. Fuel price jumps will become more rapid as fossil fuels are depleted. That covers all costs of living: driving, home heating, food transportation, electricity, etc. A suburban collapse is coming. Twentysomethings are leaving suburbs now for urban carfree living.
Fuel prices will continue rising then probably jump around the middle of the decade. Fuel price jumps will become more rapid as fossil fuels are depleted. That covers all costs of living: driving, home heating, food transportation, electricity, etc. A suburban collapse is coming. Twentysomethings are leaving suburbs now for urban carfree living.
Fossil fuels won't be depleted for 100+ years. And twentysomethings have discovered what 50 somethings already knew. That living in a congested hell-hole with millions of other smelly people is quite the bloody opposite of a good life. WFH and Covid and rioting brigands and beasts make it very obvious. Huddling together in an urban hellscape with vagrants and whiners and welfarists and underachieving leftists and rude hellspawn nasties galore of all shapes and sizes, mostly oversized, is not the way to go. Plus we have something else that's really cool in the suburbs: AIR.
It is the suburbs that are having a rebirth, as escape from the crime and the punishment of living with the desperados and the malingerers and the marauders and the demanders reveals itself to be a much more pleasant way to live this thing we call life.
Buses and trains be damned, we drive motorcars propelled by good old gasoline among the mountains and between the trees. We go where we want, when we want. Not when some putrescent malfunctioning sardine can arrives with a screeching roar, preloaded with the sardines, packed in oil, into which we are supposed to slither and slide to claim our slot. And, for which, we are supposed to pay 3 times what they pay in the civilized suburbs. Sceeeeerewww that. The suburbs are where it's at.
Last edited by Marc Paolella; 12-21-2020 at 10:44 PM..
As said earlier, it depends on where you live or are concerned about. It will all depend on the supply and demand for homes in a particular area, the local economy and job market, and what is happening in general in that particular part of the country.
Fuel prices will continue rising then probably jump around the middle of the decade. Fuel price jumps will become more rapid as fossil fuels are depleted. That covers all costs of living: driving, home heating, food transportation, electricity, etc. A suburban collapse is coming. Twentysomethings are leaving suburbs now for urban carfree living.
Huh...
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